Anaerobic digestion effluent adds significantly to nutrient loading, energy consumption, and emissions of wastewater treatment plants. Sustainably treating this ammonia-rich sidestream requires systematic analysis on environmental impacts of shortcut nitrogen removal processes. Coupled Aerobic–Anoxic Nitrous Decomposition Operation (CANDO) is a novel biotechnology for sidestream nitrogen removal with energy recovery potential from N2O. Nevertheless, the environmental impacts of CANDO remain unknown after initial scale-up studies. In this study, three sidestream treatment processes, namely, nitritation-denitritation, nitritation-anammox, and CANDO, integrated with mainstream anaerobic-anoxic-oxic (A2O) treatment routes, are assessed by process simulation and life cycle assessment (LCA). The results show that the nitritation-anammox process has the smallest effect on human health, ecosystem quality, and resource availability among the three routes. Furthermore, the global warming potential generated from the CANDO-A2O process is 157 kg CO2 eq per cubic meter of anaerobic digestion liquid treated, which is slightly higher than nitritation-anammox-A2O (132 kg CO2 eq) but remarkably lower than nitritation-denitritation-A2O (248 kg CO2 eq). With low carbon emission and promising alternatives for carbon source, the CANDO-A2O route exhibits great potential in achieving carbon neutrality. This work is the first to quantitatively evaluate the potential environmental impacts of CANDO from a life cycle perspective, providing insights on the adoption and optimization of shortcut nitrogen removal processes in sidestream treatment.